Governance Indicators focus on the actions of the most senior governing body and/or its relevant sub-committee.  There are ten total indicators in this category.

The most senior governing body and/or its relevant sub-committees…

10 resources
Governance Indicator 1

reviews and challenges the company’s business model and strategy to ensure any inherent human rights risks are identified and addressed.

Governance Indicator 2

regularly discusses progress and challenges in addressing the company’s salient human rights risks, informed by related complaints or grievances from the workforce or external stakeholders, root cause analyses of major human rights-related incidents and knowledge of current leading practice.

Governance Indicator 3

reviews and challenges the company’s efforts to influence public policy and regulation to ensure they do not undermine human rights.

Governance Indicator 4

has systems in place to regularly hear the experiences and views of people across the workforce about how they are affected by the business, and informs the workforce about how these inputs have influenced company decision-making.

Governance Indicator 5

has systems in place to regularly hear the experiences and views of external stakeholders about how they are affected by the business, and informs them about how their inputs have influenced company decision-making.

Governance Indicator 6

ensures that cross-functional processes are in place to share information about human rights risks; agree actions to address human rights risks; and monitor progress against those actions.

Governance Indicator 7

requests and reviews a root cause analysis of any incident resulting in severe human rights impacts, in order to ensure that systems, processes and practices are adapted to avoid their recurrence.

Governance Indicator 8

ensures that performance incentives for top management are in place that reflect the company’s salient human rights issues; are supported by relevant KPIs; and are given reasonable weight in compensation schemes.

Governance Indicator 9

challenges any top management performance incentives that may promote behaviors that undermine respect for human rights.

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